Thx
CLS is doing very well, but we would not consider it the same. At the end of the day it is a manufacturer for other companies. An important role, for sure, but not as 'moat-like' as the companies owning/developing the products it is making. It has introduced new products and is adapting to make more of its own hardware, but historically it has been a late-cycle company, primarily benefiting when its customers are very busy and need extra manufacturing capacity. This has been a bit of a boom/bust cycle for CLS, until recently. The AI spending wave appears to be sustainable longer, but we would not consider it the same, which is why it typically gets a lower valuation multiple (18X today).
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